How Lithium Universe’s New Tech Could Revolutionize Solar Panel Recycling

Strategic Acquisition Amid Lithium Market Cyclicality

Lithium Universe Limited (ASX, LU7) has taken a decisive step to diversify its portfolio by acquiring 100% of New Age Minerals Pty Ltd, securing exclusive global rights to an innovative photovoltaic (PV) solar panel recycling technology. This move comes as the company finalizes its Bécancour Lithium Refinery development and positions itself for a lithium price recovery, adopting a counter-cyclical strategy to mitigate current market headwinds.

Microwave Joule Heating, A Game-Changer in PV Recycling

The core of this acquisition is the Microwave Joule Heating Technology (MJHT), developed in collaboration with Macquarie University and the University of New South Wales. Unlike traditional recycling methods that rely on high temperatures and toxic chemicals, MJHT uses targeted microwave radiation to selectively heat and soften the ethylene vinyl acetate (EVA) encapsulant in solar panels. This enables clean mechanical separation of valuable materials such as silicon, silver, gallium, and indium without environmental harm.

Current recycling rates for PV panels stand at a mere 15%, with the majority of end-of-life panels ending up in landfill, representing a lost opportunity for recovering critical metals. MJHT promises recovery rates approaching 95-100%, potentially tripling the economic value extracted compared to conventional crushing methods. This breakthrough not only supports a circular economy but also addresses the looming 'tsunami' of solar waste forecasted by the International Energy Agency.

Market Context and Environmental Imperatives

The global PV market is projected to reach nearly US$40 billion by 2037, growing at an annual rate exceeding 8%. In Australia alone, 37% of households have installed rooftop solar panels, contributing 12.4% of the nation's electricity in 2024. However, with an estimated 1 million tonnes of end-of-life PV waste expected by 2045, the environmental and economic stakes are high.

Moreover, the silver market, critical for PV manufacturing, is experiencing demand outstripping supply, with industrial consumption surging and prices rising. Recovering silver and silicon from recycled panels could become increasingly vital, making MJHT’s efficient recovery capabilities particularly timely.

Deal Structure and Future Outlook

The acquisition includes milestone payments contingent on pilot plant commissioning and commercial production, alongside a 3% royalty on gross sales derived from MJHT products. Annual licensing fees commence in 2027, reflecting a long-term commitment to commercializing this technology.

While the company awaits lithium market recovery, this strategic pivot into PV recycling technology offers a promising avenue to add shareholder value and contribute to sustainable resource management. The partnership with leading academic institutions further enhances the prospects for rapid development and deployment.